OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-867
AN ACT CONCERNING INVESTMENT OF CERTAIN MUNICIPAL
FUNDS.
Primary Analyst: AN 3/16/21
Contributing Analyst(s): DD
OFA Fiscal Note
State Impact: None
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Potential
Savings
See Below See Below
Explanation
The bill allows municipalities that do not currently participate in the
Connecticut Municipal Employees Retirement System to invest their
pension fund assets with those invested by the State Treasurer. To the
extent that the bill provides municipalities access to investment classes
with lower administrative fees, there are potential savings to
municipalities that opt to pool their funds with the Treasurer.
While it is anticipated that the bill will also provide such
municipalities with access to more investment classes, resulting in
more diversification and less risk, it is unknown how choosing this
option would impact investment returns.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.